Feb 18, 2026, 17:14 AEDT, Sydney — Market closed.
- NAB finished the day up 4.0% at A$47.14, after reaching an all-time high of A$47.96 earlier.
- The bank reported stronger cash earnings for the December quarter, with margins up and bad-debt charges coming in lower.
- Capital levels are in focus, with investors also eyeing the May half-year result.
National Australia Bank Ltd (NAB.AX) ended Wednesday’s session up 4.0% at A$47.14, lifted by its first-quarter trading update. The stock had climbed as high as A$47.96 earlier—an all-time peak. (Investing.com)
This shift hits home for investors: Australian banks anchor most local portfolios, and there’s been pressure over how much longer profit growth can last with competition for deposits and mortgages heating up. Margins and capital—those are the numbers that usually settle whether a “good quarter” really cuts it.
This comes as investors adjust their rate and economic outlooks heading into the new fiscal year. For banks, a recession isn’t required for trouble—just a modest uptick in funding costs or a few sour loans can trigger pain.
NAB reported a 16% jump in cash earnings from a year ago, hitting around A$2.0 billion for the December quarter. That’s also up 15% from the average of the prior half’s quarters. Net interest margin edged up by 2 basis points to 1.80%. Credit impairment charges dropped to A$170 million. The bank’s common equity tier 1 ratio dipped to 11.48% from 11.70% at September, reflecting dividend payouts and an increase in risk-weighted assets. (NAB)
NAB Group CEO Andrew Irvine says the bank “started 2026 strongly,” citing momentum in customer-facing units and progress on its main priorities. (news.nab.com.au)
Citi’s Thomas Strong, in a client note, pointed out that investors might “look through” both the Markets & Treasury beat and the lighter bad-debt charge. But he didn’t mince words on the CET1 ratio, calling it a “clear negative”. Strong also flagged that the shares had already outperformed before the update. (Proactiveinvestors NA)
This latest update wraps the February results season for Australia’s big four banks, as competition heats up—Commonwealth Bank of Australia and Westpac are both fighting for a bigger slice of the market. NAB, for its part, says it’s aiming to shift its current Advantedge home loans over to NAB-branded products in late 2026. (Reuters)
Yet that capital drop isn’t going away — it’s weighing on the rally. Credit growth remains brisk, and should regulators decide to tighten capital rules, the bank could be forced to shore up its buffers sooner than investors are penciling in.
Then there’s the familiar risk—credit quality often holds steady until, suddenly, it doesn’t. If the slowdown gets steeper, expect bad-debt charges to jump, potentially erasing that modest margin bump.
ASX 200 was trading roughly 0.5% higher late in the afternoon, sitting near 9,007 points, putting the wider Australian market on steadier ground for the day, an ABC market snapshot showed. (ABC News)
Next session, traders have their eyes on NAB, specifically if shares can stay north of A$47 following the surge. The follow-through from other bank stocks is also in play. Much could hinge on the broker notes rolling out over the next few days—those updates typically settle whether any post-results rally has legs.
Eyes turn to NAB, with half-year results coming up May 4. The interim dividend goes ex-date May 7, record date the following day, May 8. (NAB)
